Delek US Holdings Reports 15.5% Revenue Decline and $172.7 Million Net Loss in Q1 2025

Delek US Holdings, Inc. reported a significant decline in financial performance for the first quarter of 2025, with net revenues of $2.64 billion, down 15.5% from $3.13 billion in the same period last year. The company experienced a net loss of $172.7 million, or $2.78 per share, compared to a loss of $32.6 million, or $0.51 per share, in the prior year. This downturn was attributed to decreased refining margins, driven by lower average prices for gasoline and ultra-low-sulfur diesel, alongside reduced sales volumes. The logistics segment also saw a slight revenue decrease, although it benefited from incremental contributions from recent acquisitions.

In terms of operational changes, Delek completed two significant acquisitions: Gravity Water Intermediate Holdings LLC on January 2, 2025, for $300.8 million, and H2O Midstream on September 11, 2024. These acquisitions are expected to enhance Delek's logistics capabilities, particularly in water disposal and recycling operations in the Permian Basin and Bakken regions. The Gravity acquisition alone contributed $22.9 million in revenue and $9.9 million in net income for the quarter. The company also reported a decrease in total operating costs, which fell to $2.77 billion from $3.10 billion, primarily due to lower costs of materials and other expenses.

Delek's operational metrics reflected a challenging environment, with refining margins decreasing by 48.8% year-over-year. The average price of WTI Cushing crude oil fell by 7.2%, impacting the overall profitability of the refining segment. The company reported a refining segment EBITDA loss of $16.2 million, compared to a profit of $105.1 million in the previous year. Despite these challenges, the logistics segment's EBITDA remained relatively stable, supported by the contributions from the recent acquisitions.

Looking ahead, Delek's management expressed a cautious outlook amid ongoing market volatility and geopolitical uncertainties. The company aims to enhance its operational efficiency and financial flexibility through strategic initiatives, including a focus on cost control and optimizing its capital structure. As of March 31, 2025, Delek had total liquidity of $1.81 billion, including $623.8 million in cash and cash equivalents, positioning it to navigate the current economic landscape while pursuing growth opportunities. The company remains committed to returning value to shareholders through dividends and share repurchases, having returned $47.4 million in capital during the first quarter of 2025.